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Unformatted text preview: Review Assessment: Problem Set 6 Name: Problem Set 6 Status: Completed Score: 80 out of 100 point(s) Instructions: Question 1 Multiple Choice 5 of 5 point(s) A production function is a relationship between Your Answer: inputs and quantity of output. Correct Answer: inputs and quantity of output. Feedback: inputs and quantity of output. Question 2 Multiple Choice 0 of 5 point(s) Refer to the figures below to answer the following questions. Figure 13-6 Refer to Figure 13-6. Which of the figures represents the total cost curve for a firm? Your Answer: Figure 1 Correct Answer: Figure 2 Feedback: Figure 2 Question 3 Multiple Choice 0 of 5 point(s) In the long run, a firm that produces and sells computers gets to choose Your Answer: the size of its factories. Correct Answer: All of the above are correct. Feedback: All of the above are correct. Question 4 Multiple Choice 0 of 5 point(s) Consider the following information about baseball production at Bob's Baseball Factory: Worker Marginal Product 1 3 2 5 3 8 4 10 5 7 6 4 7 2 Bob pays all his workers the same wage and labor is his only variable cost. From this information we can conclude that Bob's average variable cost decreases Your Answer: as output rises from 0 to 10, but rises after that. Correct Answer: as output rises from 0 to 33, but increases after that. Feedback: as output rises from 0 to 33, but increases after that. Question 5 Multiple Choice 5 of 5 point(s) A total-cost curve shows the relationship between the Your Answer: quantity of output produced and the total cost of production. Correct Answer: quantity of output produced and the total cost of production. Feedback: the quantity of output produced and the total cost of production. Question 6 Multiple Choice 5 of 5 point(s) An example of an implicit cost of production would be Your Answer: the income an entrepreneur could have earned working for someone else. Correct Answer: the income an entrepreneur could have earned working for someone else. Feedback: the income an entrepreneur could have earned working for someone else. Question 7 Multiple Choice 5 of 5 point(s) For a construction company that builds houses, which of the following costs would be a fixed cost? Your Answer: All of the above are correct. Correct Answer: All of the above are correct. Feedback: All of the above are correct. Question 8 Multiple Choice 0 of 5 point(s) Tom owns a factory in which he has produced TVs for five years. He has kept track of his average total cost as his level of production varies. This information is summarized below: Output Average Total Cost 10 $500 20 $400 30 $300 40 $400 50 $500 From this information, we can conclude that Your Answer: Tom's factory exhibits both economies and diseconomies of scale....
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